A Noble Lord: My right honourable friend the Secretary of State for Health has made the following Written Ministerial Statement.
	Today I announce the publication of the Department of Health's 2005 Autumn Performance Report (Cm 6704). A copy of this has been placed in the Library. It shows the progress my department has made towards achieving its public service agreement targets.
	Further details of the performance of the National Health Service can be found in the latest copy of the chief executive's report to the NHS; this has also been placed in the Library.
	The Autumn Performance Report shows that there have been further improvements in access to services. The number of NHS patients waiting longer than three months for an outpatient appointment has fallen from 77,500 to 39,800 over the past year. In addition, the number of people waiting more than six months for an inpatient appointment fell from 69,900 to 24,800. We are on course to meet our maximum three month wait for outpatients and six month wait for inpatients by December 2005.
	In addition to improving access we are also introducing choice. By the end of the year all eligible patients will be offered the choice of at least four providers at the point of general practitioner referral to consultant-led first outpatient appointments. Some patients are already benefiting from choice of hospital; since January 2005, cataract patients have been offered the choice of two or more providers at the point of referral. From April 2005, patients needing cardiac surgery have been given the choice of two or more providers at the point of referral by the cardiologist.
	We are also improving health. Death rates from heart disease among people under 75 have fallen by 31 per cent since the baseline of 1995–97; deaths from cancer have fallen by 14 per cent over the same period. We have also seen a 6.6 per cent fall in suicides against the 1995–97 baseline.
	These are just some of the achievements of the NHS over the past year. These improvements have been made in a demanding year through the hard work, skills and passion of hundreds of thousands of staff, the increased funding the Government are investing in heath and social care, and new and better ways of engaging services.
	Finally, the department has today published a report, Accounting for Quality Change, which discusses the way the output of the NHS is measured. The department considers it important to make the new figures public and encourage discussions and ideas for further development.

Lord Adonis: My right honourable friend the Minister of State for Schools and 14–19 Learners (Jacqui Smith) has made the following Written Ministerial Statement.
	I am announcing today the school funding settlement for 2006–07 and 2007–08. The settlement will mean that, by 2007–08, total revenue funding per pupil will have increased nationally by over £1,400 in real terms since this Government came to power, an increase of some 50 per cent. The settlement demonstrates the continuing high priority the Government give to schools.
	On 21 July this year I announced to the House details of the new school funding arrangements which will be introduced from April 2006: in particular a ring-fenced dedicated schools grant (the DSG), multi-year budgets for schools and a rationalisation of standards-related grants. The purpose of those arrangements is to guarantee delivery of the Government's commitment to increase spending on schools in every local authority area, to provide schools with the tools to take a strategic approach to their financial planning, to reduce bureaucracy, to ensure stability and to enable schools to focus on raising standards for all pupils.
	I am announcing today the Government's decisions on the overall increase in the dedicated schools grant in 2006–07, the allocation methodology to be used to distribute the DSG, and the level of the minimum funding guarantee for schools in each of those years. Details of allocations of both the DSG and specific grants to authorities and schools are being sent to local authorities today and I am placing copies in the Library of the House.
	I announced in July that the minimum funding guarantee for schools in both 2006–07 and 2007–08 would again be set at a level which covered the average cost pressures on schools in those years, subject to a final assessment of those pressures. As in previous years, my officials have discussed the likely pressures on schools with representatives of local authorities and head teachers. These include in particular the differing pressures on primary and secondary schools respectively which result from the final stage of implementation of the National Agreement on Workforce Reform.
	To reflect these pressures, the minimum funding guarantee for secondary and special schools will be set at 3.4 per cent per pupil for 2006–07. The guarantee for nursery and primary schools in 2006–07 will be higher, at 4 per cent per pupil, to reflect the higher cost of implementing workforce reform in those schools in academic year 2005–06. In 2007–08 the guarantee will be the same for all schools, at 3.7 per cent per pupil. As in previous years, we expect the majority of schools to receive increases above the level of the minimum guarantee.
	The Learning and Skills Council will match the minimum funding guarantee for secondary schools in its funding rates for school sixth forms in both years.
	The overall level of the DSG will increase by 6.4 per cent in cash terms in 2006–07, over the baseline of local authorities' budgeted expenditure on schools in 2005–06, and by a further 6 per cent in 2007–08. This includes funding which will be transferred out of the DSG to meet additional costs of the expanding academies programme, as pupils in academies no longer need to be funded via local authorities.
	The guaranteed unit of funding per pupil from the DSG will increase by 6.8 per cent on average in 2006–07, and by 6.7 per cent on average in 2007–08. Final allocations of the DSG will depend on actual pupil numbers as at January 2006 and will be determined by May 2006. However, authorities can plan ahead with confidence now in the knowledge that they will receive a fixed sum for each of their pupils.
	In August, my department issued a consultation document on the method of distribution of the DSG. This proposed a modified method of distribution for 2006–07 and 2007–08 which would take the existing level of authorities' spend on the schools budget as the baseline, give every authority at least a 5 per cent per pupil increase over that amount each year, and distribute the remaining grant according to criteria which would be determined by Ministers in advance of each multi-year budget period. Distribution against each of these criteria would be through a formula based on objective criteria. The key benefits of the proposed approach were that it met the concerns of those authorities which currently spend significantly in excess of their schools formula spending share (SFSS), since their spend in excess of SFSS would be consolidated into their baseline. It would also enable increases in funding to be targeted more directly at government priorities for schools.
	Following that consultation, we have now decided to go ahead with this approach for 2006–07 and 2007–08. A majority of respondents to the consultation supported the proposals. However, schools in a number of authorities which currently under-spend against their schools formula spending share were concerned about the proposals. We have responded to their concerns by allocating in our distribution methodology additional funding specifically for schools in these authorities. As announced in July, we propose to review the operation of this methodology, consider what lessons can be learnt and work up proposals for the distribution of the DSG in the longer term, in time for the announcement of the first three-year allocations of DSG in late 2007 following the Comprehensive Spending Review. We will announce in the new year how we propose to involve local authorities and other stakeholders in that review.
	Overall, the minimum increase in any authority's per pupil DSG will be 6.4 per cent in 2006–07 and 6.1 per cent in 2007–08, and the maximum will be 9 per cent in 2006–07 and 8.4 per cent in 2007–08. In addition, to protect authorities with rapidly falling rolls, we will ensure that every authority receives a cash increase in its DSG of at least 4 per cent in each year.
	Within this overall increase we will, as announced in July, give every authority an initial basic increase of 5 per cent per pupil in both 2006–07 and 2007–08: for authorities in London this will be increased to 5.1 per cent per pupil in both years in response to the STRB's recommendation that there should be a higher increase in the London pay scales for teachers, amounting to a pressure on school budgets of 0.1 per cent.
	Beyond this basic increase, we intend to distribute the available increase in funding in 2006–07 and 2007–08 to reflect the priority which the Government attach to meeting the costs of greater personalisation of learning, more practical learning options for 14–16 pupils, workforce reform and the increased entitlement to early years provision from 33 to 38 weeks. In relation to each of these priorities, the sums allocated in 2006–07 will be consolidated into the authority's baseline for 2007–08, and any further sums identified for 2007–08 will be on top of that amount.
	First, as set out in the recent White Paper Higher Standards, Better Schools For All and announced by my right honourable friend the Secretary of State to the House on 17 October, we will earmark £335 million over the two years to support personalised learning, including extended opportunities outside the school day, at key stage 3. £120 million of the increase in the DSG will be earmarked for this purpose in 2006–07, and a further £215 million will be earmarked in 2007–08. In addition, £100 million will be earmarked for personalised learning, including extended opportunities, in primary schools in 2006–07, with a further £130 million in 2007–08. Every authority will receive an element of this funding, but it will be targeted particularly at authorities with the highest levels of deprivation and low prior attainment.
	Secondly, we will distribute £40 million in 2006–07 and a further £70 million in 2007–08 to support the provision of more practical learning options for pupils aged 14–16 to maintain their engagement in learning. This funding will be distributed to all local authorities on the basis of pupil numbers aged 11–15.
	Thirdly, we will distribute £70 million of the 2006–07 increase to reflect the full year cost of implementing guaranteed planning, preparation and assessment time in primary schools from September 2005. This will be distributed on the basis of primary aged pupil numbers in each authority.
	Fourthly, we will distribute £82 million of the 2006–07 increase to meet the cost of the increased entitlement to free early years provision from 33 to 38 weeks which was announced in the 10 Year Childcare Strategy. This will be distributed on the basis of numbers of three and four year-old pupils in private, voluntary and independent settings.
	In each of these cases we will apply the area cost adjustment as used in the local government finance settlement, announced on 5 December, to the distribution of funds to reflect the higher costs of employing staff in certain areas.
	Finally, we will distribute £30 million in 2006–07 and a further £30 million in 2007–08 to authorities whose spending on schools was below the level of their schools formula spending share (SFSS) in 2005–06. In 2006–07 each of these authorities will receive a sum equal to around a quarter of the difference between its schools budget for 2005–06 and its SFSS for that year. In 2007–08 we will give them a further quarter of the difference so that half the gap between spending and SFSS has been closed by then.
	Although some of the increases in each year will be earmarked for particular purposes, it will be for individual local authorities in consultation with their schools forums to decide on the distribution of the whole of the grant locally, subject to meeting the minimum funding guarantee, and taking into account local circumstances as well as the Government's priorities. Local authorities and their forums are best placed to take decisions on the balance of priorities locally. As I announced in July we will be enhancing local decision-making under the new arrangements by giving schools forums new powers to approve certain proposals from their local authority. We are also strengthening the arrangements for schools forums' constitutions and proceedings to ensure that all partners within the school and wider educational community have confidence in the decisions that forums will be taking on their behalf. Regulations for this purpose will be laid before the House tomorrow.
	At the same time, it is important to ensure a consistency of approach across authorities on key issues which will affect the stability and predictability of schools' budgets. I have therefore decided, following consultation, to go ahead with the proposal I announced in July to require authorities to use a single pupil count to determine their schools' budgets from 2006–07. The majority of those consulted welcomed this proposal, which will mean an end to in-year redeterminations of schools' budgets, and the consequent uncertainty about those budgets. This requirement will be incorporated into regulations which will be brought before the House soon.
	I believe that this settlement provides the financial foundation for key government priorities for schools and 14–19 learners. The distribution reflects an appropriate balance between delivering explicit resources to where they are needed to meet key government commitments, and providing all authorities with headroom, once the cost of the minimum funding guarantee has been met, to target on local priorities. This will ensure that all authorities have scope to begin to respond to the conclusions of the review of deprivation funding—published today alongside the settlement—ensuring that schools in our most deprived communities and areas benefit from sufficient resource to meet the pressures and challenges they face.
	The settlement also recognises the position of schools in authorities which in the past have chosen to spend above the level of their funding allocation—by taking their actual spending rather than their funding as the starting point for the DSG—goes some way towards closing the gap by prioritising schools in authorities which have traditionally spent less than their funding allocation. The Government will consider whether and how to move further towards convergence around a national formula for authorities as part of the more fundamental review of the DSG in advance of 2008–09.
	I am also publishing today details of specific grants for 2006–07 and 2007–08. As I promised in July, the funding for the school development grant will be increased by 3.4 per cent per pupil in 2006–07 and by 3.7 per cent per pupil in 2007–08, in line with the minimum funding guarantee for secondary schools. We will also bring a number of currently separate grants into the school development grant to reduce the number of different funding streams going to schools, and enable them to use these resources more flexibly. I am announcing details of a new fairer formula for the schools standards grant, which from 2006–2007 schools can use to support the development of extended services.
	Finally, I can confirm that, as previously announced, the leadership incentive grant (LIG) will come to an end in March 2006. However, the Government believe it is important to continue to provide specific support to our most deprived schools, and I am therefore announcing today arrangements for doing so within the school development grant, together with transitional arrangements for other schools which currently receive LIG.
	The announcement I am making today creates a framework which combines clarity about the Government's priorities for school funding with flexibility for local authorities and schools forums over how they respond to those priorities. But most importantly it means that, for the first time, schools will know what their budgets will be for more than one year ahead, giving them increased stability and predictability and allowing them to plan ahead with confidence and make the best use of their resources for the benefit of all their pupils.